Investing in Philippines: How to invest like Warren Buffett


Wednesday, February 22, 2012

How to invest like Warren Buffett

I have no idea but I have seen his videos on YouTube and it seems so simple.

Probably the difference is that he is a seasoned investor. His background and mentors has truly made him the man that he is. He is able to accumulate such wealth because of his characteristics. That is why it made me think, what makes Warren Buffett think like that?

In the video(click here to watch video) he said that before looking at the stock's price he first look at the company's financial statement. He reviews the company books doing fundamental analysis and compare metrics to the industry it belongs. After doing that he now turns to the market price and evaluate whether such stock is undervalued.

I know I overuse this term already or even have repeated this topic but why is it that he, Warren Buffett, arrives at a different result from our own even though we use the same method. I guess that is the very reason why they called him the "Oracle of Omaha."
Probably it is because of these two things: one he is experienced, second he is patient. For stock investors like me I guess I haven't reached that length of experience yet where I have truly sharpen my brain in figuring out which stock will be profitable in the next of weeks. His patience is truly amazing as well. He said that even if the stock market will close for 5 years it won't bother him since his investment horizon is 5 years and eternity. This is because I think he already have the money we are just trying to build our portfolios by keeping the profits.

He looks at a stock purchase as an asset rather than as a merchandise that you buy to sell at a gain. I guess it all boils down to that.

Any thoughts about how the Oracle of Omaha does his stock trades? Please share it in the comment box. 


Rej said...

His patience in studying the market is really admirable. I wish I have that kind of patience too.

Investing in Philippines said...

Hi sis Rej. Yes I hope too I have the same patience. I could have profited more if I hold on to my PSE and AC shares and waited till they climbed up high. Well that is how it is when you are a beginner and a bit lacking in capital, we grab an opportunity without looking at the better opportunity which is just a few weeks away

Rej said...

experienced the same thing in both companies. hehe! pero nagbuy back ako sa pse. then sold again. kept 50% though.PSE's price is really starting to become very very expensive might have a difficult time accumulating again in the future. i planned to buy AC last week kaya lang wala ring pondo. haha!

Rej said...
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